Quick Links
Information For
About IDOR
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 01-0265-GIL | 12/14/2001 | Computer Software | If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL). |
| ST 01-0264-GIL | 12/26/2001 | Food, Drugs & Medical Appliances | A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0263-GIL | 12/26/2001 | Food | Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL). |
| ST 01-0262-GIL | 12/24/2001 | Medical Appliances | A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0261-GIL | 12/20/2001 | Motor Fuel Tax | Section 500.335(k) of the Motor Fuel Tax regulations provides that “[f]iling a power of attorney does not relieve the licensee of the legal obligations associated with the license. The licensee is responsible for the payment of taxes as well as all acts and omissions of the reporting service. See 86 Ill. Adm. Code 500.335. (This is a GIL). |
| ST 01-0260-GIL | 12/20/2001 | Graphic Arts | Under the Graphic Arts Machinery and Equipment Exemption, machinery and equipment, including repair and replacement parts used primarily in graphic arts production may be purchased free from Retailers’ Occupation Tax. See 35 ILCS 120/2-5(4). See, 86 Ill. Adm. Code 130.325.) (This is a GIL.) |
| ST 01-0259-GIL | 12/20/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon their cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 01-0258-GIL | 12/19/2001 | Telecommunications Excise Tax | If Internet access service providers provide both transmission and data processing services, the charges for each must be disaggregated and separately identified. See 86 Ill. Adm. Code 495.100. (This is a GIL). |
| ST 01-0257-GIL | 12/19/2001 | Manufacturer's Purchase Credit | A purchaser that fails to properly file an Annual Report of Manufacturer's Purchase Credit Earned (ST-16) or an Annual Report of Manufacturer's Purchase Credit Used (ST-17) with the Department by the last day of the sixth month following the end of the calendar year forfeits all Manufacturer's Purchase Credit earned or used for that calendar year, unless the purchaser establishes that the purchaser's failure to file was due to reasonable cause. See 86 Ill. Adm. Code 130.331. (This is a GIL). |
| ST 01-0256-GIL | 12/17/2001 | Sale for Resale | Sales of feed to persons who breed rabbits that will later be sold at retail are considered to be sales for resale purposes. Accordingly, the purchaser should provide the supplier with a Certificate of Resale. See 86 Ill. Adm. Code 130.2100. (This is a GIL). |
| ST 01-0255-GIL | 12/17/2001 | Medical Appliances | This letter discusses the low rate of tax applicable to medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0254-GIL | 12/07/2001 | Food | With respect to food for human consumption which is to be consumed off the premises where it is sold, Retailers' Occupation Tax is imposed at the rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 01-0253-GIL | 12/07/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a GIL). |
| ST 01-0252-GIL | 12/05/2001 | Service Occupation Tax | The sale of photocopies from a photocopy machine has been determined to be a service occupation transaction and is, therefore, subject to tax under the Service Occupation Tax. See 86 Ill. Adm. Code Part 140. (This is a GIL). |
| ST 01-0251-GIL | 12/05/2001 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 01-0250-GIL | 12/04/2001 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 01-0249-GIL | 12/04/2001 | Use Tax | The Illinois State Use Tax rate is 6.25%. See 35 ILCS 105/3-10. (This is a GIL). |
| ST 01-0248-GIL | 11/29/2001 | Motor Fuel Tax | According to 86 Ill. Adm. Code 500.325(b), in the case of a carrier using independent contractors under long-term leases (more than 30 days), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. (This is a GIL.) |
| ST 01-0247-GIL | 11/29/2001 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 01-0246-GIL | 11/29/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. However, if the computer software consists of custom computer programs, then the sales of such software may not be taxable retail sales. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0245-GIL | 11/27/2001 | Charitable Games | Section 8 of the Charitable Games Act provides that raffles or other forms of gambling prohibited by law shall not be conducted on the premises where charitable games are being conducted. (230 ILCS 30/8) (This is a GIL.) |
| ST 01-0244-GIL | 11/27/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 01-0243-GIL | 11/21/2001 | Use Tax | Illinois allows a credit against Illinois Use Tax liability for tax that has been properly paid to another State. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL). |
| ST 01-0242-GIL | 11/21/2001 | Sale for Resale | Nonreusable tangible personal property sold to food and beverage vendors, including persons engaged in the business of operating restaurants, cafeterias or drive-ins, is a sale for resale when such property is transferred to customers in the ordinary course of business as part of the sale of food or beverages and is used to deliver, package or consume food or beverages, regardless of where consumption of the food or beverage occurs. Receipts from sales for resale are not subject to the Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.2070(b)(3). (This is a GIL.) |
| ST 01-0241-GIL | 11/20/2001 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (2000 State Bar Edition). (This is a GIL). |
| ST 01-0240-GIL | 11/19/2001 | Medical Appliances | Generally, medical tools, devices and equipment used for diagnostic, rehabilitative and treatment purposes do not qualify for the reduced rate of tax for medical appliances as such items, while being used for the treatment of patients, are not directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 01-0239-GIL | 11/19/2001 | Replacement Vehicle Tax | A replacement vehicle tax of $200.00 is imposed on purchases of passenger cars by insurance companies to replace passenger cars of insured persons in settlement of total loss claims. See 625 ILCS 5/3-2001 et seq. (This is a GIL). |
| ST 01-0238-GIL | 11/19/2001 | Exempt Organizations | Organizations that qualify as exclusively religious can apply to the Illinois Department of Revenue to obtain tax exemption identification numbers ("E" numbers). (This is a GIL). |
| ST 01-0237-GIL | 11/19/2001 | Nexus | In the context of a General Information Letter, the Department is unable to make nexus determinations because the amount of information required to make that determination is often best gathered by an auditor. See 86 Ill. Adm. Code 150.201. (This is a GIL). |
| ST 01-0236-GIL | 11/13/2001 | Products of Photoprocessing | Photographers, film makers, and other servicemen are subject to Retailers’ Occupation Tax on the photoprocessing component of their total service charge when they sell products of photoprocessing. See 86 Ill. Adm. Code 130.2000. (This is a GIL). |
| ST 01-0235-GIL | 11/13/2001 | Books and Records | Generally taxpayers are required to maintain business books and records during any period for which the Illinois Department of Revenue is authorized to issue a Notice of Tax Liability (NTL). See 86 Ill. Adm. Code 130.815. (This is a GIL). |
| ST 01-0234-GIL | 11/13/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL). |
| ST 01-0233-GIL | 11/09/2001 | Use Tax | Illinois recently implemented a pilot direct pay permit program and is currently implementing a full program. 35 ILCS 120/2-10.5. See P.A. 90-682 and P.A. 92-0484. (This is a GIL). |
| ST 01-0232-GIL | 11/02/2001 | Miscellaneous | This letter describes how a three-part prescription label is subject to Retailers' Occupation Tax liability even though one-third of the label is used as part of the packaging of the prescriptions. See 86 Ill. Adm. Code 130.1401. (This is a GIL). |
| ST 01-0231-GIL | 10/30/2001 | Sale for Resale | In order to document the fact that sales to purchasers are sales for resale, sellers are obligated to obtain valid Certificates of Resale from their purchasers. See the enclosed copy of 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 01-0230-GIL | 10/29/2001 | Delivery Charges | Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 01-0229-GIL | 10/29/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL). |
| ST 01-0228-GIL | 10/26/2001 | Miscellaneous | This letter discusses sales of computer software, nexus issues and local taxes. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0227-GIL | 10/26/2001 | Telecommunications Excise Tax | This letter discusses the Telecommunications Excise Tax treatment of several cellular telecommunications fact patterns. See 35 ILCS 630/1 et seq. (This is a GIL). |
| ST 01-0226-GIL | 10/26/2001 | Miscellaneous | This letter discusses Service Occupation Tax, see 86 Ill. Adm. Code 140.101 and Telecommunications Excise Tax, see 86 Ill. Adm. Code 495. (This is a GIL). |
| ST 01-0225-GIL | 10/26/2001 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801 (This is a GIL). |
| ST 01-0224-GIL | 10/26/2001 | Use Tax | Illinois will give a credit for taxes properly due and paid in another state. See 86 Ill. Adm. Code 150.310. (This is a GIL). |
| ST 01-0223-GIL | 10/26/2001 | Exempt Organizations | Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification numbers. These numbers establish that the organizations are exempt from incurring Use Tax when purchasing tangible personal property in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 01-0222-GIL | 10/25/2001 | Construction Contractors | Persons who take tangible personal property and permanently affix it to real estate act as construction contractors. Construction contractors incur Use Tax and local Retailers' Occupation Tax reimbursement liabilities, payable to their suppliers, based upon their cost price of items which they purchase for subsequent incorporation into real estate. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 01-0221-GIL | 10/24/2001 | Interstate Commerce | The U.S. Supreme Court in its analysis of the Commerce Clause has concluded that the Constitution confers no immunity from State taxation on interstate commerce and that interstate commerce must bear its fair share of the state tax burden, so long as certain minimum contacts occur. See Complete Auto Transit v. Brady (1977), 430 U.S. 274. (This is a GIL). |
| ST 01-0220-GIL | 10/24/2001 | Miscellaneous | Retailers’ Occupation Tax does not apply to sales of aggregate exploration, mining, off highway hauling, processing, maintenance and reclamation equipment used for the exploration and mining of mineral deposits and for the manufacture of resultant aggregate products. See 86 Ill. Adm. Code 130.351. (This is a GIL). |
| ST 01-0219-GIL | 10/19/2001 | Exempt Organizations | Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification numbers. 86 Ill. Adm. Code 130.2007. This is a GIL. |
| ST 01-0218-GIL | 10/18/2001 | Use Tax | A machine that qualifies for the vending machine exemption pursuant to 35 ILCS 120/2-5(35) is not subject to use tax when purchased out-of-State. (This is a GIL). |
| ST 01-0217-GIL | 10/18/2001 | Computer Software | The sale of canned or prewritten software is generally a taxable event, however, if real and substantial changes to the operation coding of canned or prewritten software is made to meet the specific individualized requirements of the purchaser for his limited or particular use, then the sales of such software may not be taxable. See 86 Ill. Adm. Code 130.1935 (This is a GIL). |
| ST 01-0216-GIL | 10/17/2001 | Food | Food prepared for immediate consumption is taxed at the high rate. Food prepared for immediate consumption means food made ready by the retailer to be eaten without substantial delay after the final stage of preparation by the retailer. 86 Ill. Adm. Code 130.310 (This is a GIL). |
| ST 01-0215-GIL | 10/17/2001 | Motor Fuel Tax | This letter describes documentation requirements under the Motor Fuel Tax Law. See 86 Ill. Adm. Code 500.345 and 500.235. (This is a GIL). |
| ST 01-0214-GIL | 10/17/2001 | Service Occupation Tax | Under Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 01-0213-GIL | 10/17/2001 | Computer Software | If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.130.1935. (This is a GIL). |
| ST 01-0212-GIL | 10/17/2001 | Sale for Resale | This letter describes a drop-shipment situation. See 86 Ill. Adm. Code 130.1415. (This is a GIL). |
| ST 01-0211-GIL | 10/16/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 01-0210-GIL |
10/11/2001 |
Use Tax | This letter discusses the applicability of the Use Tax to uses of refinery gas. See 35 ILCS 105/3-10. (This is a GIL.) |
| ST 01-0209-GIL | 10/02/2001 | Exempt Organizations | Organizations that have exemption identification numbers are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. These limited amounts of selling are described in 86 Ill. Adm. Code 130.2005(a)(2) through (a)(4). (This is a GIL). |
| ST 01-0208-GIL | 10/01/2001 | Interstate Commerce | Under 86 Ill. Adm. Code 140.501(a), where tangible personal property is located in this State at the time of its transfer (or is subsequently produced in Illinois) as an incident to a sale of service, and is then delivered in Illinois, registered servicemen may not claim the Interstate Commerce exemption from Service Occupation Tax. (This is a GIL). |
| ST 01-0207-GIL | 09/28/2001 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively charitable, religious, or educational receive a tax exemption identification number. See 86 Ill. Adm. Code m130.2007. (This is a GIL.) |
| ST 01-0206-GIL | 09/28/2001 | Computer Software | This letter discusses the application of sales tax to charges for software upgrades and technical support. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 01-0205-GIL | 09/27/2001 | Use Tax | Illinois Use Tax can be avoided to the extent tax was paid to another state with respect to the sale, purchase or use of tangible personal property before bringing such property into Illinois. A credit in the amount of the tax properly due and paid in the other state will be allowed on the Illinois Use Tax return. Please see the enclosed copy of 86 Ill. Adm. Code 150.310(a)(3) (This is a GIL.) |
| ST 01-0204-GIL | 09/27/2001 | Use Tax | This letter describes an occasional sale by the lessor of trucks. See 86 Ill. Adm. Code 130.110. (This is a GIL.) |
| ST 01-0203-GIL | 09/27/2001 | Food | Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption. See 86 Ill. Adm. Code 130.210. (This is a GIL). |
| ST 01-0202-GIL | 09/26/2001 | Farm Machinery and Equipment | The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL.) |
| ST 01-0201-GIL | 09/26/2001 | Farm Machinery and Equipment | Even though sales may be at retail, the Illinois Retailers' Occupation Tax (i.e. sales tax) does not apply to farm machinery and equipment, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily in production agriculture or State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL.) |
| ST 01-0200-GIL | 09/26/2001 | Farm Machinery and Equipment | In order for a transaction to qualify for exemption on the basis of the Farm machinery & Equipment exemption, a certification must be obtained containing the information set out at 86 Ill. Adm. Code 130.305(m). (This is a GIL.) |
| ST 01-0199-GIL | 09/24/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.) |
| ST 01-0198-GIL | 09/24/2001 | Sale for Resale | Sales of tangible personal property, which property, to the extent not first subjected to a use for which it was purchased, as an ingredient or constituent, goes into and forms a part of tangible personal property subsequently the subject of a "sale at retail," are not sales at retail, provided that the property purchased is deemed to be purchased for the purpose of resale. See 86 Ill. Adm. Code 130.210. (This is a GIL.) |
| ST 01-0197-GIL | 09/24/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.) |
| ST 01-0196-GIL | 09/24/2001 | Food, Drugs and Medical Appliances | Dietary supplements could be classified as food or they could be classified as drugs if the products purport on the label to have medicinal qualities. In either event, they qualify for the reduced State rate of tax. 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 01-0195-GIL | 09/24/2001 | Motor Fuel Tax | This letter discusses the use of dyed diesel fuel in “trailer jockeys.” See 35 ILCS 505/1 et seq. (This is a GIL.) |
| ST 01-0194-GIL | 09/24/2001 | Computer Software | This letter discusses the application of sales tax to charges for software upgrades and technical support. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 01-0193-GIL | 09/24/2001 | Nexus | This letter outlines the principles of nexus. See 86 Ill. Adm. Code 150.801. (This is a GIL.) |
| ST 01-0192-GIL | 09/24/2001 | Manufacturing Machinery and Equipment | Exempt manufacturing equipment can include independent devices or tools separate from any machinery but essential to an integrated manufacturing or assembling process. See 86 Ill. Adm. Code 130.330(c)(3). (This is a GIL.) |
| ST 01-0191-GIL | 09/24/2001 | Exempt Organizations | Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification numbers. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 01-0190-GIL | 09/24/2001 | Food, Drugs, and Medical Appliances | The high rate of tax (6.25% plus local tax) applies to sales of food and drugs that are not designed for human consumption. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 01-0189-GIL | 09/21/2001 | Leasing | The State of Illinois taxes leases differently for Retailers’ Occupation Tax and Use Tax purposes than the majority of other states. See 86 Ill. Adm. Code 130.220. (This is a GIL.) |
| ST 01-0188-GIL | 09/20/2001 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL.) |
| ST 01-0187-GIL | 09/18/2001 | Returns | Retailers are supposed to file sales tax returns on the cash (i.e. gross receipts) basis according to Section 3 of the Retailers’ Occupation Tax Act. See 35 ILCS 120/3. (This is a GIL.) |
| ST 01-0186-GIL | 09/10/2001 | Gross Receipts | Persons that are engaged in the business of selling meals to purchasers for use or consumption incur Retailers' Occupation Tax liability on their gross receipts from such sales. Such persons specifically include caterers. See the enclosed copy of Section 130.2145. (This is a GIL.) |
| ST 01-0185-GIL | 09/10/2001 | Medical Appliances | A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. Medical devices that are used for diagnostic or treatment purposes do not qualify for the lower tax rate. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 01-0184-GIL | 09/10/2001 | Motor Fuel Tax | This letter discusses changes to the Motor Fuel Tax Law as a result of Public Act 92-0030. (This is a GIL.) |
| ST 01-0183-GIL | 09/06/2001 | Sale for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b) (This is a GIL.) |
| ST 01-0182-GIL | 09/06/2001 | Electricity Excise Tax | The Electricity Excise Tax is imposed upon the privilege of using in this State electricity purchased for use or consumption and not for resale. See 35 ILCS 640/1 et seq. (This is a GIL.) |
| ST 01-0181-GIL | 09/05/2001 | Gross Receipts | Gross receipts are defined as all the consideration actually received by a seller from whatever source, except traded-in tangible personal property. See 86 Ill. Adm. Code 130.401. (This is a GIL.) |
| ST 01-0180-GIL | 09/05/2001 | Electricity Excise Tax | Sales to the Federal Government are not taxable under the Electricity Excise Tax Law by virtue of the Supremacy Clause of the United States Constitution. See 35 ILCS 640/2-4. (This is a GIL.) |
| ST 01-0179-GIL | 09/05/2001 | Sale for Resale | In order for a Certificate of Resale to be valid in Illinois, it must contain the items of information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL.) |
| ST 01-0178-GIL | 09/05/2001 | Claims for Credit | When a motor vehicle is returned for a refund of the purchase price under the New Vehicle Buyer Protection Act, the Department can only issue a credit memorandum or a refund to the retailer for the amount of tax paid attributable to the initial sale of that vehicle. See 86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 01-0177-GIL | 09/05/2001 | Electricity Excise Tax | For purposes of collecting tax under the Electricity Excise Tax Law, the term “delivering supplier” does not mean any entity engaged in the practice of resale redistribution of electricity within a building prior to January 2, 1957. See Public Act 92-310. (This is a GIL). |
| ST 01-0176-GIL | 08/31/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0175-GIL | 08/30/2001 | Bulk Sales | Successor liability provisions in the Illinois Retailers' Occupation Tax are found at 35 ILCS 120/5j. (This is a GIL). |
| ST 01-0174-GIL | 08/30/2001 | Miscellaneous | A company had no duty to file for a sales tax refund on behalf of a customer who has erroneously paid the sales tax. (This is a GIL.) |
| ST 01-0173-GIL | 08/29/2001 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL). |
| ST 01-0172-GIL | 08/29/2001 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (2000 State Bar Edition). (This is a GIL). |
| ST 01-0171-GIL | 08/27/2001 | Leasing | Lessors of tangible personal property under true leases are deemed end users of the property to be leased. See 86 Il. Adm. Code 130.220. (This is a GIL.) |
| ST 01-0170-GIL | 08/22/2001 | Food, Drugs and Medical Appliances | Items such as vitamins or dietary supplements may be considered foods and may be taxed at either the high or low rate depending upon the nature of the establishment selling the vitamins. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0169-GIL | 08/22/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. See 86 ILL. Adm. Code 130.2007. (This is a GIL). |
| ST 01-0168-GIL | 08/21/2001 | Leasing | This letter discusses the application of sales tax in lease situations. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 01-0167-GIL | 08/20/2001 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL.) |
| ST 01-0166-GIL | 08/17/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL). |
| ST 01-0165-GIL | 08/17/2001 | Computer Software | Retailers' Occupation Tax is imposed upon persons selling canned computer software at retail. See 35 ILCS 120/2. (This is a GIL). |
| ST 01-0164-GIL | 08/16/2001 | Sale for Resale | Including registration or resale numbers from purchasers on Certificates of Resale is the preferred method for documenting that their purchases are purchases for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 01-0163-GIL | 08/15/2001 | Telecommunications Excise Tax | Generally, persons that provide subscribers access to the Internet and who do not, as part of that service, charge customers for the line or other transmission charges which are used to obtain access to the Internet, are not considered to be telecommunications retailers. See 86 Ill. Adm. Code 495.100(d). (This is a GIL). |
| ST 01-0162-GIL | 08/15/2001 | Manufacturing Machinery & Equipment | Generally, purchasers of equipment to be used primarily in the manufacture of food products for sale can claim the manufacturing machinery & equipment exemption from sales tax because food processing constitutes the manufacturing or assembling of tangible personal property. See 86 Ill. Adm. Code 130.330(d)(3)(F). (This is a GIL). |
| ST 01-0161-GIL | 08/15/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 01-0160-GIL | 08/15/2001 | Manufacturing Machinery & Equipment | Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 01-0159-GIL | 08/15/2001 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 01-0158-GIL | 08/14/2001 | Manufacturing Machinery and Equipment | When determining whether a piece of equipment qualifies for the manufacturing machinery and equipment exemption, the requirements of 86 Ill. Adm. Code 130.330 must be met. This regulation describes the manufacturing process as the production of articles of tangible personal property or the assembling of different articles of tangible personal property by procedures commonly regarded as manufacturing, processing, fabricating, or refining which changes some existing material or materials into a material with a different form, use or name. (This is a GIL). |
| ST 01-0157-GIL | 08/14/2001 | Newsprint & Ink | Information or data that is downloaded electronically, such as downloaded books, musical recordings, newspapers or magazines, does not constitute the transfer of tangible personal property. These types of transactions represent the transfer of intangibles and are thus not subject to Retailers' Occupation and Use Tax. See 86 Ill. Adm. Code 130.2105. (This is a GIL.) |
| ST 01-0156-GIL | 08/14/2001 | Farm Machinery and Equipment | Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily in production agriculture or for use in State or Federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 01-0155-GIL | 08/13/2001 | Farm Machinery and Equipment | Machinery and equipment that is used primarily (over 50% of the time) in production agriculture or for use in State or Federal agricultural programs may be purchased free from tax under the farm machinery and equipment exemption. 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 01-0154-GIL | 08/13/2001 | Telecommunications Excise Tax | This letter discusses the Telecommunications Excise Tax and Telecommunications Municipal Infrastructure Maintenance Fee treatment of security services. See 35 ILCS 630/1 et seq. and 35 ILCS 635/1 et seq. (This is a GIL). |
| ST 01-0153-GIL | 08/10/2001 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling tangible personal property at retail. 35 ILCS 120/2 (2000 State Bar Edition). (This is a GIL). |
| ST 01-0152-GIL | 08/08/2001 | Service Occupation Tax | The purchase of tangible personal property that is transferred to the service customer may result in either Service Occupation Tax liability or Use Tax liability for the servicemen depending upon which tax base the servicemen choose to calculate their tax liability. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0151-GIL | 08/08/2001 | Service Occupation Tax | Servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 01-0150-GIL | 08/08/2001 | Delivery Charges | Mail order delivery charges are considered separately agreed upon services so long as the mail order form requires a separate charge for delivery and so long as the charges designated as transportation are actually reflective of the cost of shipping. 86 Ill. Adm. Code 130.415(d). (This is a GIL.) |
| ST 01-0149-GIL | 08/08/2001 | Computer Software | This letter responds to a survey regarding computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0148-GIL | 08/06/2001 | Computer Software | Computer software means all types of software including operational, applicational, utilities, compilers, templates, shells and all other forms. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0147-GIL | 08/03/2001 | Request for Information | The Department has the authority to offset tax overpayments against outstanding tax liabilities. Please refer to 15 ILCS 405/10.05. (This is a GIL). |
| ST 01-0146-GIL | 08/02/2001 | Exempt Organizations | Sales to governmental bodies are subject to tax unless the governmental body has obtained an active exemption identification number ("E" number) from the Department. See 86 Ill. Adm. Code 130.2080. (This is a GIL). |
| ST 01-0145-GIL | 08/02/2001 | Bingo | The Bingo License and Tax Act (“Act”) (230 ILCS 25/1 et seq.) requires that any bona fide religious, charitable, labor, fraternal, youth athletic, senior citizen, educational, or veterans’ organization organized in Illinois be licensed in order to conduct bingo games. (This is a GIL). |
| ST 01-0144-GIL | 08/01/2001 | Repairs | The taxability of maintenance agreements depends upon whether charges for the agreements are included in the selling price of the tangible personal property. See 86 Ill. Adm. Code 140.301. (This is a GIL). |
| ST 01-0143-GIL | 07/30/2001 | Service Occupation Tax | A veterinarian is engaged in a service occupation subject to the Service Occupation Tax. The Service Occupation Tax is a tax imposed upon tangible personal property transferred as an incident of the sale of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0142-GIL | 07/27/2001 | Use Tax | Under the Use Tax Act, donors who purchase tangible personal property and give it away make a taxable use of the donated property. See 86 Ill. Adm. Code 150.305(c). (This is a GIL). |
| ST 01-0141-GIL | 07/27/2001 | Construction Contractors | In Illinois, construction contractors are deemed to be the end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 01-0140-GIL | 07/27/2001 | Certificate of Registration | Section 2a of the Retailers’ Occupation Tax Act requires that when registering with the Department, limited liability companies provide the name, social security number, and FEIN number of each manager and member. Further, that same section allows the Department to request that an applicant provide “such other information as the Department may reasonably require.” (This is a GIL). |
| ST 01-0139-GIL | 07/27/2001 | Local Taxes | If a purchase order is accepted by a retailer in a jurisdiction that imposes a local tax, that local tax will be incurred by the retailer. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 01-0138-GIL | 07/27/2001 | Sales of Service | Persons who transfer tangible personal property incident to providing service under separate maintenance agreements or service contracts are acting as servicemen and incur Use Tax liability based upon their cost price of tangible personal property transferred incident to the completion of the maintenance agreements. See 86 Ill. Adm. Code 140.301(b)(3). (This is a GIL). |
| ST 01-0137-GIL | 07/27/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. However, if the computer software consists of custom computer programs, then the sales of such software may not be taxable retail sales. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0136-GIL | 07/27/2001 | Rolling Stock Exemption | The Illinois Retailers' Occupation Tax and Use Tax do not apply to sales of tangible personal property to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 01-0135-GIL | 07/27/2001 | Manufacturing Machinery & Equipment | Machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 01-0134-GIL | 07/27/2001 | Sale for Resale | Sales of tangible personal property, which property, to the extent not first subjected to a use for which it was purchased, as an ingredient or constituent, goes into and forms a part of tangible personal property subsequently the subject of a "sale at retail," are not sales at retail, provided that the property purchased is deemed to be purchased for the purpose of resale. See 86 Ill. Adm. Code 130.210. (This is a GIL). |
| ST 01-0133-GIL | 07/26/2001 | Construction Contractors | Under Illinois law, a person who takes tangible personal property off the market and converts it into real estate is deemed a construction contractor and is the legal end-user of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 01-0132-GIL | 07/26/2001 | Telecommunications Excise Tax | This letter discusses the Telecommunications Excise Tax treatment of telecommunications associated with network connection services. See 86 Ill. Adm. Code Part 495. (This is a GIL). |
| ST 01-0131-GIL | 07/26/2001 | Bingo | This letter discusses issues related to “bingo/raffle” cards. See 230 ILCS 25/2. (This is a GIL). |
| ST 01-0130-GIL | 07/26/2001 | Gross Receipts | Restocking charges are generally not considered to be taxable gross receipts for purposes of Retailers’ Occupation Tax. See 35 ILCS 120/1. (This is a GIL). |
| ST 01-0129-GIL | 07/25/2001 | Sale for Resale | Sales of tangible personal property, which property, to the extent not first subjected to a use for which it was purchased, as an ingredient or constituent, goes into and forms a part of tangible personal property subsequently the subject of a "sale at retail," are not sales at retail, provided that the property purchased is deemed to be purchased for the purpose of resale. See 86 Ill. Adm. Code 130.210. (This is a GIL). |
| ST 01-0128-GIL | 07/24/2001 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 01-0127-GIL | 07/24/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0126-GIL | 07/23/2001 | Trade-Ins | Tangible personal property that is required to be titled or registered with an agency of this State or the federal government and are reported on individual transaction reporting returns is subject to the allowance of advance trade-ins if all of the requirements set out at 86 Ill. Adm. Code 130.455(d) are followed. See 86 Ill. Adm. Code 130.455. (This is a GIL). |
| ST 01-0125-GIL | 07/18/2001 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation Tax liability or Use Tax liability for the servicemen depending upon which tax base the servicemen choose to calculate their tax liability. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0124-GIL | 07/16/2001 | Miscellaneous | This letter responds to an annual survey. See 86 Ill. Adm. Code P art 130. (This is a GIL). |
| ST 01-0123-GIL | 07/06/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0122-GIL | 07/05/2001 | Miscellaneous | This letter discusses the applicability of local taxes to sales of motor fuel. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 01-0121-GIL | 07/05/2001 | Miscellaneous | It is the position of the Illinois Department of Revenue that the exemptions listed in the Illinois Code of Civil Procedure are applicable to levies under Section 1109 of the Income Tax Act only where expressly incorporated. See 35 ILCS 5/1109. (This is a GIL). |
| ST 01-0120-GIL | 07/05/2001 | Local Taxes | Local taxes are incurred when sales occur within a jurisdiction imposing a local tax. Selling is deemed to occur where the purchase order is accepted by the seller. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 01-0119-GIL | 07/03/2001 | Tax Rate | The tax rate that applies to the sale of tangible personal property is generally the rate in effect at the time of delivery of the tangible personal property. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 01-0118-GIL | 07/03/2001 | Miscellaneous | This letter discusses multi-service situations and graphic arts exemption questions. See 86 Ill. Adm. Code 140.301 and 86 Ill. Adm. Code 130.325. (This is a GIL). |
| ST 01-0117-GIL | 07/03/2001 | Motor Fuel Tax | This letter discusses tax/fee-free sales of fuel under the Underground Storage Tank Tax and the Environmental Impact Fee. 35 ILCS 505/2a and 415 ILCS 125/310. (This is a GIL). |
| ST 01-0116-GIL | 07/03/2001 | Motor Fuel Tax | The Motor Fuel Tax Law and the Environmental Impact Fee Law grant certain exemptions from tax/fee for sales of aviation fuel and kerosene to holders of certificates of public convenience and necessity or foreign air carrier permits, issued by the U.S. Department of Transportation, and their air carrier affiliates. However, these exemptions do not extend to sales to air carriers who, because they are not required to do so, do not hold such certificates or permits. 35 ILCS 505/2a and 415 ILCS 125/301. (This is a GIL). |
| ST 01-0115-GIL | 07/02/2001 | Certificate of Registration | A business that sells tangible personal property at retail in Illinois is required to obtain a Certificate of Registration from the Department. See 35 ILCS 120/2a. (This is a GIL). |
| ST 01-0114-GIL | 07/02/2001 | Hotel Operators' Tax | The Hotel Operators' Occupation Tax Act imposes a tax upon persons engaged in the business of renting, leasing or letting rooms in a hotel. See 86 Ill. Adm. Code 480.101. (This is a GIL). |
| ST 01-0113-GIL | 07/01/2001 | Sale of Service | The purchase of tangible personal property that is transferred to service customers of an auto body shop may result in either Service Occupation Tax liability or Use Tax liability for the servicemen. See 86 Ill Adm. Code 140.101 (This is a GIL.) |
| ST 01-0112-GIL | 06/28/2001 | Sale for Resale | Sales of tangible personal property, which property, to the extent not first subjected to a use for which it was purchased, as an ingredient or constituent, goes into and forms a part of tangible personal property subsequently the subject of a "sale at retail," are not sales at retail, provided that the property purchased is deemed to be purchased for the purpose of resale. See 86 Ill. Adm. Code 130.210. (This is a GIL). |
| ST 01-0111-GIL | 06/29/2001 | Sale for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL). |
| ST 01-0110-GIL | 06/28/2001 | Sales of Service | Illinois Retailers' Occupation and Use Taxes (sales taxes) do not apply to sales of service that do not involve the transfer of tangible personal property to customers. However, if tangible personal property is transferred incident to sales of service, this will result in either Service Occupation Tax liability or Use Tax liability for the servicemen. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0109-GIL | 06/28/2001 | Food | A 1% sales tax rate, plus any applicable local taxes, is applied to food sold for human consumption to be consumed off the premises where sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption), drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0108-GIL | 06/25/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. See, 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 01-0107-GIL | 06/22/2001 | Governmental Bodies | Tax does not apply to the renting of automobiles to a governmental body so long as such transaction meets the requirements of 86 Ill. Adm. Code 180(a)-(h). (This is a GIL.) |
| ST 01-0106-GIL | 06/22/2001 | Returns | Retailers are required to file sales tax returns on the gross receipts basis according to Section 3 of the Retailers’ Occupation Tax Act, 35 ILCS 120/3. (This is a GIL). |
| ST 01-0105-GIL | 06/22/2001 | Food | All sales by retail establishments that provide facilities for on-premises consumption of food are subject to the high rate of tax unless the establishments utilize separate means of collection and physically partition the areas in which food not for immediate consumption is sold. See 86 Ill. Adm. Code 130.310(b)(2)(A). (This is a GIL). |
| ST 01-0104-GIL | 06/22/2001 | Exempt Organizations | Sales to exempt organizations of tangible personal property required to be registered with an agency of this State may be made tax exempt even if a member of the organization is listed along with the exempt organization on the application for title. See 86 Ill. Adm. Code 130.2005 and 130.2007. (This is a GIL). |
| ST 01-0103-GIL | 06/21/2001 | Service Occupation Tax | If the sign vendor produces a sign on special order of the customer and the sign is so specialized that it would have no commercial value to anyone other than that particular customer who placed the order, the sign vendor would incur a Service Occupation Tax liability instead of a Retailers’ Occupation Tax liability. See 86 Ill. Adm. Code 140.101 (This is a GIL). |
| ST 01-0102-GIL | 06/21/2001 | Claims for Credit | If a taxpayer pays an amount of tax under the Retailers' Occupation Tax that is not due, either as a result of a mistake of fact or an error of law, the taxpayer may file a claim for credit with the Department. No credit shall be given the taxpayer unless the taxpayer shows that he or she has borne the burden of the tax or has unconditionally repaid the amount of the tax to the purchaser from whom it was collected. See 86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 01-0101-GIL | 06/21/2001 | Food, Drugs & Medical Appliances | Products that qualify as medicines, drugs, or medical appliances are taxed at the reduced low rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 01-0100-GIL | 06/18/2001 | Repairs | This letter discusses the taxability of maintenance agreements and repairs. See 86 Ill. Adm. Code 140.301. (This is a GIL). |
| ST 01-0099-GIL | 06/15/2001 | Sale at Retail | This letter describes the sale at retail of shelving and signs by a manufacturer. See 86 Ill. Adm. Code 130.1401. (This is a GIL). |
| ST 01-0098-GIL | 06/15/2001 | Gross Receipts | Caterers incur Retailers' Occupation Tax liability on their entire gross receipts from sale, without deductions on account of overhead costs, such as charges for linens, dishes, flowers or delivery. (This is a GIL.) |
| ST 01-0097-GIL | 06/14/2001 | Computer Software | Meeting the requirements of 86 Ill. Adm. Code 130.1935(a)(1)(A)–(E), records reflecting a policy of providing replacement software to licensees at minimal or no charge is exempt from Retailers’ Occupation Tax. (This is a GIL.) |
| ST 01-0096-GIL | 06/14/2001 | Exempt Organizations | 86 Ill. Adm. Code 130.2005(b)(4)(C)(ii) provides that “[s]chools are not taxable on their sales of school annuals because these are noncompetitive items.” However, sales made by an agent on behalf of an unknown or undisclosed principal will be taxable to the agent. See 86 Ill. Adm. Code 130.1915. (This is a GIL). |
| ST 01-0095-GIL | 06/07/2001 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 01-0094-GIL | 06/07/2001 | Motor Fuel Tax | This letters discusses requirements for tax-free sales of motor fuel to the Federal government. See 86 Ill. Adm. Code 130.2080 and 86 Ill. Adm. Code 500.210. (This is a GIL). |
| ST 01-0093-GIL | 05/31/2001 | Construction Contractors | An item becomes realty after installation if it is physically affixed to the realty and the party affixing the item intends to make it a part of the realty. |
| ST 01-0092-GIL | 05/23/2001 | Telecommunications Excise Tax | This letter discusses the Telecommunications Excise Tax treatment of telecommunications associated with Internet services. See 86 Ill. Adm. Code Part 495. (This is a GIL). |
| ST 01-0091-GIL | 05/15/2001 | Leasing | Under Illinois law, "true leases" and "leases" that are actually conditional sales contracts are treated differently for Retailers' Occupation and Use Tax purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 01-0090-GIL | 05/15/2001 | Nexus | This letter discusses the issue of nexus. See Quill v. North Dakota, 112 S. Ct. 1902 (1992). (This is a GIL). |
| ST 01-0089-GIL | 05/09/2001 | Food | All sales by retail establishments that provide facilities for on-premises consumption of food are subject to the high rate of tax unless the establishments utilize separate means of collection and physically partition the areas in which food not for immediate consumption is sold. See 86 Ill. Adm. Code 130.310(b)(2)(A). (This is a GIL). |
| ST 01-0088-GIL | 05/09/2001 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL). |
| ST 01-0087-GIL | 05/03/2001 | Sale for Resale | In order for a Certificate of Resale to be valid in Illinois, it must contain the items of information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL). |
| ST 01-0086-GIL | 05/02/2001 | Sale for Resale | To be valid in Illinois a Certificate of Resale must contain the items of information listed in 86 Ill. Adm. Code 130.1405(b). (This is a GIL). |
| ST 01-0085-GIL | 05/02/2001 | Rolling Stock | The Retailers' Occupation and Use Tax Acts provide an exemption for sales of tangible personal property to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.430. (This is a GIL). |
| ST 01-0084-GIL | 05/02/2001 | Returns | Retailers are authorized to convert from the gross receipts to the gross sales basis of filing Retailers’ Occupation Tax returns pursuant to 86 Ill. Adm. Code 130.401. (This is a GIL). |
| ST 01-0083-GIL | 05/01/2001 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 01-0082-GIL | 04/30/2001 | Interstate Commerce | Retailers' Occupation Tax does not apply where sellers ship goods by carrier or by mail, according to the terms of agreements with purchasers, and the seller delivers the goods from a point within Illinois to a point outside Illinois and the goods are not to be returned to Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 01-0081-GIL | 04/27/2001 | Rolling Stock Exemption | The Illinois Retailers' Occupation Tax and Use Tax do not apply to sales of tangible personal property to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 01-0080-GIL | 04/26/2001 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling tangible personal property at retail. 35 ILCS 120/2 (1998 State Bar Edition). (This is a GIL). |
| ST 01-0079-GIL | 04/20/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101 (This is a GIL). |
| ST 01-0078-GIL | 04/18/2001 | Automobile Renting Tax | This letter rescinds part of General Information Letter ST-99-0128 and clarifies that motorcycles or motor driven cycles are subject to liability under the Automobile Renting Occupation and Use Tax Act. See 86 Ill. Adm. Code 180.101. (This is a GIL). |
| ST 01-0077-GIL | 04/18/2001 | Manufacturer's Purchase Credit | Retailers and serviceman may require that separate MPC certificates be provided for each invoice or purchase in order to properly document those sales. See 86 Ill. Adm. Code 130.331. (This is a GIL). |
| ST 01-0076-GIL | 04/16/2001 | Books and Records | Generally taxpayers are required to maintain business books and records during any period for which the Illinois Department of Revenue is authorized to issue a Notice of Tax Liability (NTL). See 86 Ill. Adm. Code 130.815. (This is a GIL). |
| ST 01-0075-GIL | 04/16/2001 | Computer Software | Sales of canned software are taxable retail sales. Maintenance agreements are dependent upon contractual terms. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 01-0074-GIL | 04/16/2001 | Leasing | This letter addresses questions concerning the taxation of different lease charges and fees relating to the lease. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 01-0073-GIL | 04/16/2001 | Use Tax | Under the Use Tax Act, a tax is imposed upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 86 Ill. Adm. Code 150.101 (This is a GIL). |
| ST 01-0072-GIL | 04/16/2001 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 01-0071-GIL | 04/16/2001 | Local Taxes | If a purchase order is accepted outside this State but the tangible personal property which is sold is in an inventory of the retailer located within the metropolitan region at the time of sale (or is subsequently produced in the region), then delivered in Illinois to the purchaser, the place where the property is located at the time of sale (or is subsequently produced in Illinois) will determine where the seller is engaged in business for Regional Transportation Authority Retailers' Occupation Tax purposes with respect to such sale. See 86 Ill. Adm. Code 320.115. (This is a GIL). |
| ST 01-0070-GIL | 04/09/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax Act imposes a tax on the act or privilege of originating or receiving intrastate or interstate telecommunications by persons in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers by such persons. See 86 Ill. Adm. Code 495. (This is a GIL). |
| ST 01-0069-GIL | 04/05/2001 | Manufacturing Machinery & Equipment | Machinery and equipment used primarily in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from the Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 01-0068-GIL | 04/04/2001 | Electricity Excise Tax | The Electricity Excise Tax is imposed upon the privilege of using in this State electricity purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service. The incidence of this tax is on the consumers of electricity. See 35 ILCS 640/1 et seq. (This is a GIL). |
| ST 01-0067-GIL | 03/30/2001 | Local Taxes | In general, the imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 01-0066-GIL | 03/30/2001 | Bulk Sales | It is the position of the Department that a sale of debtor assets conducted under the auspices of a bankruptcy court is not subject to the bulk sales reporting requirements of the Retailers’ Occupation Tax Act. See 35 ILCS 120/5j. (This is a GIL). |
| ST 01-0065-GIL | 03/30/2001 | Delivery Charges | Whether shipping and handling charges may be deducted by retailers in calculating Retailers' Occupation Tax liability depends not upon the separate billing of such transportation or handling charges but upon whether the charges are included in the selling prices of the property or are contracted for separately by purchasers and retailers. See 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 01-0064-GIL | 03/29/2001 | Use Tax | An exemption is available for a nonresident individual who purchases tangible personal property outside Illinois and uses it outside this State for at least three months prior to bringing the property to this State. See, 86 Ill. Adm. Code 130.315. (This is a GIL). |
| ST 01-0063-GIL | 03/23/2001 | Service Occupation Tax | Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b)(1) is met. See 86 Ill. Adm. Code 130.2115. (This is a GIL). |
| ST 01-0062-GIL | 03/16/2001 | Motor Fuel Tax | Sales of dyed diesel fuel are for non-highway use and are not subject to the motor fuel tax. A legible and conspicuous notice stating “Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use” must appear on all shipping papers (including delivery tickets or manifests and excluding material safety data sheets), bills of lading, and invoices accompanying any sale of dyed diesel fuel. See 86 Ill. Adm. Code 500.210. (This is a GIL). |
| ST 01-0061-GIL | 03/15/2001 | Hotel Operators Occupation Tax | Hotel operators incur Hotel Operators’ Occupation Tax liability on receipts from room rentals to governmental bodies. 86 Ill. Adm. Code 480.101(b)(3). (This is a GIL.) |
| ST 01-0060-GIL | 03/15/2001 | Leasing | Persons who rent tangible personal property to others incur a Use Tax liability based on their cost price of items purchased for their rental inventories. The only exception is the rentor of automobiles under lease terms of one year or less. 86 Ill. Adm. Code 130.2010(b). (This is a GIL.) |
| ST 01-0059-GIL | 03/12/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL.) |
| ST 01-0058-GIL | 03/09/2001 | Computer Software | Charges for updates of canned software are considered to be sales of software and therefore taxable. 86 Ill. Adm. Code 130.1935(b). |
| ST 01-0057-GIL | 03/09/2001 | Sale at Retail | A business may have nexus with a state, even though it does not have a retail operation in that state. 86 Ill. Adm. Code 150.201(i). (This is a GIL) |
| ST 01-0056-GIL | 03/09/2001 | Gross Receipts | When the legal incidence of a tax is on the consumer, it is not considered to be part of the gross receipts from the sale of tangible personal property for the purpose of calculating Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.445(a). (This is a GIL). |
| ST 01-0055-GIL | 03/08/2001 | Penalties | A taxpayer may apply for reasonable cause abatement of a penalty. See 86 Ill. Adm. Code 700.400. (This is a GIL). |
| ST 01-0054-GIL | 03/07/2001 | Tax Collection | The subject of Section 13 of the Retailers' Occupation Tax Act is overcollection of tax. See 35 ILCS 120/13. (This is a GIL.) |
| ST 01-0053-GIL | 03/06/2001 | Repairs | Persons who transfer tangible personal property incident to providing repairs under service contracts that were sold separately from the tangible personal property being repaired are acting as servicemen and incur a Use Tax liability based on their cost price of tangible personal property transferred incident to the completion of the repair. See 86 Ill. Adm. Code Sec. 140.301. (This is a GIL). |
| ST 01-0052-GIL | 03/02/2001 | Nexus | This letter sets out the guidelines concerning different types of retailers in order to determine whether the retailer should collect Illinois Use Tax. See, 86 Ill. Adm. Code 150.201. (This is a GIL.) |
| ST 01-0051-GIL | 02/28/2001 | Leasing | When under the terms of an insurance contract, an insurance company pays for the complete loss of tangible personal property, including a motor vehicle, to a lessor as the loss payee, and title thereto is surrendered to the insurance company, a retail sale has not occurred and the transaction would not be taxable. See Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 01-0050-GIL | 02/26/2001 | Public Utility Taxes | The sale of gas or gas services in Illinois is subject to taxation under the Gas Revenue Tax Act. See 86 Ill. Adm. Code 470.110 & 470.145. (This is a GIL.) |
| ST 01-0049-GIL | 02/26/2001 | Use Tax | Out-of-State sellers who fall under the definition of a "retailer maintaining a place of business in this State" must register to collect Illinois Use Tax from Illinois customers and remit that tax to the Department. See 86 Ill. Adm. Code Sec. 150.801(c). (This is a GIL). |
| ST 01-0048-GIL | 02/23/2001 | Service Occupation Tax | This letter discusses methods of paying Service Occupation Tax by registered de minimis servicemen. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0047-GIL | 02/23/2001 | Miscellaneous | This letter reviews sales and use tax information in a mining publication. (This is a GIL.) |
| ST 01-0046-GIL | 02/23/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 01-0045-GIL | 02/23/2001 | Exempt Organizations | Gross receipts from proceeds from the sale of personal property, including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children are exempt from Retailers' Occupation Tax. However, this exemption does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. See 86 Ill. Adm. Code 130.2009. (This is a GIL.) |
| ST 01-0044-GIL | 02/22/2001 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.) |
| ST 01-0043-GIL | 02/22/2001 | Telecommunications Excise Tax | Generally, persons who provide subscribers access to the Internet and who do not, as part of that service, charge customers for the line or other transmission charges which are used to obtain access to the Internet, are not considered to be telecommunications retailers from these activities. See 86 Ill. Adm. Code 495.110. (This is a GIL.) |
| ST 01-0042-GIL | 02/22/2001 | Computer Software | This letter discusses issues regarding sales of computer software and hardware, nexus, and sale/leaseback transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 01-0041-GIL | 02/22/2001 | Computer Software | Charges for updates of canned software are fully taxable pursuant to 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 01-0040-GIL | 02/22/2001 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.) |
| ST 01-0039-GIL | 02/22/2001 | Food, Drugs & Medical Appliances | Vitamins, nutritional aids, and food supplements qualify for the low 1% tax rate. 86 Ill. Adm. Code 130.310(a) and (c)(1). (This is a GIL.) |
| ST 01-0038-GIL | 02/22/2001 | Motor Fuel Tax | Section 13 of the Motor Fuel Tax Law, 35 ILCS 505/13 (1998 State Bar Edition), provides, in part, that no claim based upon the use of undyed diesel fuel shall be allowed except for undyed diesel fuel used by a commercial vehicle, as that term is defined in Section 1-111.8 of the Illinois Vehicle Code, for any purpose other than operating the commercial vehicle upon the public highways and unlicensed commercial vehicles operating on private property. Claims shall be limited to commercial vehicles that are operated for both highway purposes and any purposes other than operating such vehicles upon the public highways. See 86 Ill. Adm. Code 500.235. (This is a GIL.) |
| ST 01-0037-GIL | 02/22/2001 | Gross Receipts | The standard method of reporting receipts from sales is to report on a gross receipts basis, that is to report when payments are actually received. If, however, the seller prefers to file and pay ROT liability on a gross sales basis, or accrual method, because it more properly reflects its method of accounting for sales, the seller may declare its intention to change reporting methods to the Illinois Department of Revenue. See 86 Ill. Adm. Code 130.401(a) (This is a GIL.) |
| ST 01-0036-GIL | 02/21/2001 | Use Tax | The Use Tax Act imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. 35 ILCS 105/3 (1998 State Bar Edition). See 86 Ill. Adm. Code 150.101. (This is a GIL.) |
| ST 01-0035-GIL | 02/21/2001 | Service Occupation Tax | When custom order items such as personalized business calling cards and letterheads are sold, Retailers’ Occupation Tax does not apply. However, sales of custom order items are subject to Service Occupation Tax liability. See 86 Ill. Adm. Code 130.1995. (This is a GIL.) |
| ST 01-0034-GIL | 02/19/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. (This is a GIL.) |
| ST 01-0033-GIL | 02/16/2001 | Trade-Ins | Under Illinois law, a trade-in credit is available to a retailer when the purchaser trades in tangible personal property of like kind and character as that which is being sold by the retailer. See 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 01-0032-GIL | 02/15/2001 | Motor Fuel Tax | Under the Motor Fuel Tax Law and the Environmental Impact Fee Law, no such tax and fee shall be imposed upon the importation or receipt of aviation fuels and kerosene at airports with over 300,000 operations per year, for years prior to 1991, and over 170,000 operations per year beginning in 1991, located in a city of more than 1,000,000 inhabitants for sale to or use by holders of certificates of public convenience and necessity or foreign air carrier permits, issued by the United States Department of Transportation, and their air carrier affiliates, or upon the importation or receipt of aviation fuels and kerosene at facilities owned or leased by those certificate or permit holders and used in their activities at an airport described above. See 86 Ill. Adm. Code 500.202 and 501.200. (This is a GIL.) |
| ST 01-0031-GIL | 02/07/2001 | Telecommunications Excise Tax | This letter discusses the sales and excise tax treatment of various Internet services. See 86 Ill. Adm. Code Part 495. (This is a GIL). |
| ST 01-0030-GIL | 02/07/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 01-0029-GIL | 02/07/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL). |
| ST 01-0028-GIL | 02/02/2001 | Agents | When a person acts as an agent for an unknown or undisclosed principal and sells tangible personal property for the undisclosed principal, the agent incurs Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.1915. (This is a GIL.) |
| ST 01-0027-GIL | 02/02/2001 | Manufacturing Machinery & Equipment | Machinery that places tangible personal property into the packaging in which it is sold to the ultimate consumer can qualify for the Manufacturing Machinery and Equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 01-0026-GIL | 02/01/2001 | Miscellaneous | The Department will not approve the accuracy of private legal publications. See, 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 01-0025-GIL | 02/01/2001 | Sale for Resale | Under Illinois law, a dentist is engaged primarily in a service occupation and therefore deemed a serviceman. As a serviceman, tax liability can be assessed in one of four ways. The purchase of tangible personal property that is transferred to service customers may result in either Service Occupation Tax liability or Use Tax liability for the serviceman, depending upon which tax base the servicemen must calculate their liability. (This is a GIL.) |
| ST 01-0024-GIL | 02/01/2001 | Medical Appliances | Medical appliances are items which are intended by their manufacturer for use in directly substituting for a malfunctioning body part. 86 Ill. Adm. Code 130.310(c)(2). (This is a GIL.) |
| ST 01-0023-GIL | 01/31/2001 | Miscellaneous | The Board of Appeals administers a voluntary disclosure program that can provide for limited liabilities for participants who come forward and disclose their liabilities. See 86 Ill. Adm. Code 210.126. (This is a GIL.) |
| ST 01-0022-GIL | 01/31/2001 | Sale at Retail | Persons who sell signs that have commercial value incur Retailers’ Occupation Tax liability when making such sales, even if such signs are produced on special order for the purchaser. See 86 Ill. Adm. Code 130.2155. (This is a GIL.) |
| ST 01-0021-GIL | 01/31/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 01-0020-GIL | 01/3/12001 | Use Tax | If a retailer is required or authorized to collect Use Tax, his records must show that he states such tax separately to the purchaser from the selling price of the tangible personal property that he is selling. See 86 Ill. Adm. Code 150.1305. (This is a GIL.) |
| ST 01-0019-GIL | 01/20/2001 | Pollution Control Facilities | Compactors used in recycling operations do not qualify as exempt pursuant to 86 Ill. Adm. Code 130.335. Compactors do not reduce, prevent, or eliminate air or water pollution or treat or dispose of potentially harmful pollutants. (This is a GIL.) |
| ST 01-0018-GIL | 01/30/2001 | Leasing | Lessors under true leases incur Illinois Use Tax liability on their cost price of tangible personal property purchased for rental purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 01-0017-GIL | 01/30/2001 | Food, Drugs & Medical Appliances | Vitamins, nutritional aids, and food supplements qualify for the low 1% tax rate. 86 Ill. Adm. Code 130.310(a) and (c)(1). (This is a GIL.) |
| ST 01-0016-GIL | 01/30/2001 | Delivery Charges | In general, shipping and handling or delivery charges are includable in the gross receipts subject to tax unless the buyer and seller agree upon such charges separately from the selling price of the tangible personal property which is sold. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 01-0015-GIL | 01/30/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. However, if the computer software consists of custom computer programs, then the sales of such software may not be taxable retail sales. See 86 Ill. Adm. Code 130.1935(c). (This is a GIL.) |
| ST 01-0014-GIL | 01/30/2001 | Use Tax | By giving away tangible personal property, a donor makes a taxable use of the property and is subject to Use Tax on the cost price of the property purchased to be given away. See 86 Ill. Adm. Code 130.305 (This is a GIL). |
| ST 01-0013-GIL | 01/29/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 01-0012-GIL | 01/26/2001 | Gross Receipts | An exemption from gross receipts subject to sales tax is found in 35 ILCS 105/3-5(8) and 120/2-5(18). These sections provide an exemption from Illinois Retailers’ Occupation Tax and Use Tax for “Legal tender, currency, medallions, or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion." (This is a GIL.) |
| ST 01-0011-GIL | 01/26/2001 | Agents | An auctioneer acting on behalf of an unknown or undisclosed principal is responsible for Retailers’ Occupation Tax on the gross receipts from the sale. However, if the auctioneer is acting on behalf of a known or disclosed principal, the sale of tangible personal property is taxable to the principal and not the auctioneer if the principal is a retailer of the tangible personal property personal property being sold at the auction. See 86 Ill. Adm. Code 130.1915. (This is a GIL.) |
| ST 01-0010-GIL | 01/25/2001 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 01-0009-GIL | 01/25/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. 35 ILCS 630/3 and 630/4. (This is a GIL.) |
| ST 01-0008-GIL | 01/25/2001 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 01-0007-GIL | 01/19/2001 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (1998 State Bar Edition). (This is a GIL.) |
| ST 01-0006-GIL | 01/17/2001 | Local Taxes | For purposes of determining jurisdiction for local Retailers' Occupation Tax liability, the Department views the most important element of selling to be the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 01-0005-GIL | 01/08/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL.) |
| ST 01-0004-GIL | 01/05/2001 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 01-0003-GIL | 01/05/2001 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 01-0002-GIL | 01/04/2001 | Sales for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL.) |
| ST 01-0001-GIL | 01/03/2001 | Gross Receipts | The question of whether retailers incur Retailers’ Occupation Tax liability with respect to discount coupons depends on whether those retailers are being reimbursed for all or a part of the amount represented by the coupon. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) |
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 01-0053-PLR | 12/26/2001 | Pollution Control Facilities | This letter determines that a device qualifies as a low sulfur dioxide emission coal-fueled device under 86 Ill. Adm. Code 130.335(b). (This is a PLR). |
| ST 01-0052-PLR | 12/20/2001 | Exempt Organizations | An organization that holds a sales tax exemption number cannot use that number for purchases that are not in furtherance of its organizational purposes. (This is a PLR). |
| ST 01-0051-PLR | 12/19/2001 | Manufacturing Machinery & Equipment | This letter discusses whether flowline systems, grading systems, portioning systems, weighing systems, and operating software for use in the processing of meat, poultry, and fish can qualify as manufacturing machinery and equipment. See 86 Ill. Adm. Code 130.330. (This is a PLR). |
| ST 01-0050-PLR | 12/06/2001 | Computer Software | This letter rescinds letter rulings 91-0212, 91-0671, and 94-0186 due to an amendment to 86 Ill. Adm. Code 130.2105. Due to this amendment, electronic downloads of mailing lists to the extent they constitute only the electronic transfer of data are no longer considered tangible personal property subject to tax. (This is a PLR). |
| ST 01-0049-PLR | 11/21/2001 | Local Taxes | For purposes of determining jurisdiction for local Retailers' Occupation Tax, the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. 86 Ill. Adm. Code 270.115. (This is a PLR). |
| ST 01-0048-PLR | 11/18/2001 | Motor Fuel Tax | The fact that all the customers of a reseller of fuel hold certificates of public convenience does not allow a receiver of fuel to sell fuel tax free to the reseller under Section 2a of the Motor Fuel Tax Law. (This is a PLR). |
| ST 01-0047-PLR | 11/19/2001 | Motor Fuel Tax | The fact that all the customers of a reseller of fuel hold certificates of public convenience does not allow a receiver of fuel to sell fuel free of the environmental impact fee to the reseller under Section 310 of the Environmental Impact Fee Law. (This is a PLR). |
| ST 01-0046-PLR | 11/01/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a PLR). |
| ST 01-0045-PLR | 10/26/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in that enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR). |
| ST 01-0044-PLR | 10/12/2001 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a PLR). |
| ST 01-0043-PLR | 10/05/2001 | Pollution Control Facilities | No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335(a) of the Department's rules. (This is a PLR.) |
| ST 01-0042-PLR | 10/01/2001 | Service Occupation Tax | This letter provides a ruling on a contract regarding the cladding of windows for a construction contractor. See 86 Ill. Adm. Code 130.2140. (This is a PLR). |
| ST 01-0041-PLR | 10/01/2001 | Trade-ins | This letter describes a multiple advance trade-in situation involving aircraft. See 86 Ill. Adm. Code 130.455. (This is a PLR). |
| ST 01-0040-PLR | 09/24/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR). |
| ST 01-0039-PLR | 09/19/2001 | Automobile Renting Tax | Persons who are engaged in the business of renting automobiles in Illinois under rental terms of one year or less are subject to the Automobile Renting Occupation and Use Tax set forth at 35 ILCS 155/1 et seq. See 86 Ill. Adm. Code 180.101. (This is a PLR). |
| ST 01-0038-PLR | 08/30/2001 | Sale at Retail | This is a letter ruling regarding the sales tax treatment of purchases and sales of motor vehicles in which funds are channeled through an escrow account. See 86 Ill. Adm. Code 130.1915. (This is a PLR). |
| ST 01-0037-PLR | 08/30/2001 | Computer Software | This letter presents rulings regarding whether the licenses at issue qualify as licenses of computer software under 86 Ill. Adm. Code 130.1935. (This is a PLR). |
| ST 01-0036-PLR | 08/27/2001 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a PLR). |
| ST 01-0035-PLR | 08/23/2001 | Leasing | In a typical sale/lease back transaction, Customer A purchases equipment from Retailer B, and then sells it to Lessor C, who then leases the equipment back to Customer A. Customer A has generally paid tax when purchasing the equipment in the first transaction under a taxable retail sale. The second transaction, the sale between Customer A the Lessor C, is generally a nontaxable occasional sale, provided that Customer A is not in the business of selling like-kind property. The third transaction, the lease between Lessor C and Customer A, is nontaxable, provided that it constitutes a "true lease". See, 86 Ill. Adm. Code 130.110. (This is a PLR.) |
| ST 01-0034-PLR | 08/13/2001 | Local Taxes | The imposition of the various local Retailers' Occupation Taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 01-0033-PLR | 08/13/2001 | Telecommunications Excise Tax | This letter reviews the taxability of “incentive credits” under the Telecommunications Excise Tax Act. (This is a PLR). |
| ST 01-0032-PLR | 08/01/2001 | Miscellaneous | The Department does not consider the viewing and downloading of text and similar data over the Internet to be the transfer of tangible personal property. However, sales of canned software are taxable regardless of the means of delivery. See 86 Ill. Adm. Code 130.1935. (This is a PLR). |
| ST 01-0031-PLR | 07/26/2001 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a PLR). |
| ST 01-0030-PLR | 07/25/2001 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See enclosed copy of Section 130.1935. (This is a PLR). |
| ST 01-0029-PLR | 07/13/2001 | Cigarette Tax | This letter discusses the meaning of “manufacture” for purposes of the Cigarette Tax Act. See 35 ILCS 130/1. (This is a PLR). |
| ST 01-0028-PLR | 07/12/2001 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR). |
| ST 01-0027-PLR | 07/05/2001 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. This letter rescinds two letter rulings issued April 5, 1990 (St 90-0141) and April 25, 1990 (St 90-0168). (This is a PLR). |
| ST 01-0026-PLR | 06/29/2001 | Service Occupation Tax | The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based on the tangible personal property transferred incident to sales of service. See, 35 ILCS 115/3. (This is a PLR.) |
| ST 01-0025-PLR | 06/26/2001 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 01-0024-PLR | 06/26/2001 | Exempt Organizations | Only organizations that are exclusively religious, educational, or charitable and certain cultural/arts or senior citizen recreational organizations qualify for the statutory exemption required to make tax-free purchases of tangible personal property for use or consumption. See 35 ILCS 120/2-5. This PLR rescinds a PLR issued October 1, 1998 (ST 98-0015). (This is a PLR.) |
| ST 01-0023-PLR | 06/25/2001 | Hotel Operator's Tax | Other than rentals to certain diplomatic personnel, there is no exemption from Hotel Operator’s Occupation Tax simply because the rentor is a tax exempt or nonprofit organization, such as a church, charity or school or even unit of government, including the U.S. Government. See 86 Ill. Adm. Code 480.101. (This is a PLR.) |
| ST 01-0022-PLR | 06/22/2001 | Traded-In Property | Meeting the requirements of 86 Ill. Adm. Code 130.425(a) –(b), traded-in tangible personal property of the like kind or character allows for a credit toward the final selling price of the tangible personal property purchased. (This is a PLR.) |
| ST 01-0021-PLR | 06/20/2001 | Service Occupation Tax | This letter provides a ruling on a contract regarding the cladding of windows for a construction contractor. See 86 Ill. Adm. Code 130.2115. (This is a PLR). |
| ST 01-0020-PLR | 06/18/2001 | Local Taxes | If a purchase order for the sale of tangible personal property is accepted in a jurisdiction in See 86 Ill. Adm. Code 270.115. |
| ST 01-0019-PLR | 05/29/2001 | Computer Software | This letter concerns whether the contract in question meets the criteria of 86 Ill. Adm. Code 130.1935(a)(1) to qualify as a nontaxable license of software. (This is a PLR). |
| ST 01-0018-PLR | 05/16/2001 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR). |
| ST 01-0017-PLR | 05/14/2001 | Service Occupation Tax | Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b)(1) is met. See 86 Ill. Adm. Code 130.2115. (This is a PLR). |
| ST 01-0016-PLR | 04/19/2001 | Graphic Arts | Special order printed material that would not be considered stock or standard items and would not be sold to someone other than the purchaser for substantially the same price would not be subject to the Retailers’ Occupation Tax when sold, but would be subject to the Service Occupation Tax. See 86 Ill. Adm. Code 130.2000. (This is a PLR). |
| ST 01-0015-PLR | 04/18/2001 | Computer Software | This letter confirms that the transfers of software made pursuant to the Master Software License Agreement referenced in the letter qualify as licenses of computer software and are not subject to Retailers' Occupation Tax or Use Tax liability. 86 Ill. Adm. Code 130.1935. (This is a PLR). |
| ST 01-0014-PLR | 04/09/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR). |
| ST 01-0013-PLR | 04/09/2001 | Use Tax | An exemption is available for a nonresident individual who purchases tangible personal property outside Illinois and uses it outside this State for at least three months prior to bringing the property to this State. (This is a PLR). |
| ST 01-0012-PLR | 04/05/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR). |
| ST 01-0011-PLR | 03/28/2001 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a PLR). |
| ST 01-0010-PLR | 03/26/2001 | Exempt Organizations | A supplier's sales of gardening supplies and small gift items to exclusively charitable, religious, or educational organizations for sale at such organizations' occasional dinners and similar activities not more than twice in any calendar year are exempt from tax provided that such organizations have active exemption identification numbers issued by the Department. See 86 Ill. Adm. Code 130.2005. (This is a PLR). |
| ST 01-0009-PLR | 03/14/2001 | Newsprint & Ink | This letter informs the taxpayer that the periodical referenced in the letter qualifies for the newsprint and ink exemption under the Retailers' Occupation Tax Act and the Service Occupation Tax Act, and that the taxpayer incurs no Retailers' Occupation Tax or Service Occupation Tax liability on the printing of that newsletter. See 86 Ill. Adm. Code 130.2105 and 140.125. (This is a PLR). |
| ST 01-0008-PLR | 02/26/2001 | Local Taxes | The imposition of the local Retailers' Occupation Taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 01-0007-PLR | 02/15/2001 | Local Taxes | The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 01-0006-PLR | 02/15/2001 | Manufacturer's Purchase Credit | Purchasers of manufacturing machinery and equipment that qualifies for the manufacturing machinery and equipment exemption earn a credit in an amount equal to a fixed percentage of the tax which would have been incurred under the Use Tax or Service Use Tax. See 35 ILCS 105/3-85, 35 ILCS 110/3-70. (This is a PLR.) |
| ST 01-0005-PLR | 02/14/2001 | Local Taxes | The imposition of the local Retailers' Occupation Taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 01-0004-PLR | 02/14/2001 | Exempt Organizations | This letter discusses the tax liabilities of a university dining facility that is open to the public and that allows students living in on-campus housing to utilize a computerized declining-balance card system to pay for meals at the dining facility. See 86 Ill. Adm. Code 130.2005(b)(4). (This is a PLR). |
| ST 01-0003-PLR | 02/02/2001 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR). |
| ST 01-0002-PLR | 01/18/2001 | Manufacturing Machinery & Equipment | Machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax and Use Tax liability. See 86 Ill. Adm. Code 130.330. (This is a PLR.) |
| ST 01-0001-PLR | 01/09/2001 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of the county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR.) |